Potential GDP in the United States
A) declines over time.
B) changes over a given business cycle.
C) does not change over time.
D) grows as the economy grows.
D
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The production function is concave in capital because
A) the contribution to production of each additional unit of capital decreases. B) the marginal product of capital is increasing. C) the marginal product of labor is decreasing. D) the cost of loans increases with their quantity.
ch1.Criteria for rationing goods and resources must be established due to which of the following?
What will be an ideal response?
Consider the model: log(wage) = 
+ 
female + 
exper +
class="Wirisformula" data-wiris-created="true" src="@@PLUGINFILE@@/ppg__cognero__Ch_07_Multiple_Regression_Analysis_with_Qualitative_Information__media__5dc5a813-d9ab-40f1-aeec-01f10346ab72.PNG" style="vertical-align:middle;" />female * exper + u, where exper is the years of work experience, and female is a dummy variable (1 if the person is female, and 0 otherwise). Which of the following measures the difference in the return of experience between men and women?
A. 
B. 
+ 
C. 
+ 
+ 
D. 
+ 
The production possibilities curve illustrates
A. The existence of unlimited wants and resources. B. The limitations that exist because of scarce resources. C. That there is no limit to the level of output. D. That there is no limit to what an economy can produce.